NewsWhore
06-08-2006, 03:10 PM
The Minister for Technical Affairs for the Presidency, Temistocles Montas, warned yesterday that the government would have to halt its fuel subsidies policy if it wants to maintain the nation's economic stability. Montas told reporters that the increase in petroleum prices could not become another problem for the government to solve. As reported in Hoy, Montas told the alternative energy seminar that in a market economy the prices are what resolve situations such as the current one. He said that "it would be a serious mistake to think that in response to the rise (of oil prices) the government would take on more subsidies..." He warned that the government "would act in the way it has to act and in the way it must act, according to what the market dictates. If the market says that prices must increase, they will increase in order to guarantee the country's economic stability. Montas also spoke of abandoning the "populist discourse in the face of this reality." The minister pointed out that the Dominican Republic buys refined fuels such as diesel, avgas, and LPG, and this could put the cost per barrel at about US$80.00, which would mean that the country would have to find an additional US$1.095 billion dollars to pay for it. As a result of this, the deficit in current accounts would hit 4.0% of GDP, and that would incur a violation of the IMF Letter of Intent that set the deficit limit at 2.4% of GDP.
Power rates have already almost doubled since April, indicating that the government has already begun to implement passing on the increase in fuel for generation.
Link To Original Article (http://www.dr1.com/index.html#2)
Power rates have already almost doubled since April, indicating that the government has already begun to implement passing on the increase in fuel for generation.
Link To Original Article (http://www.dr1.com/index.html#2)